September 1, 2017 – Natural Gas Intelligence (NGI)
NY Part 2: New York Freezing Out Marcellus NatGas Infrastructure
By Jamison Cocklin
*Part two of four. This series examines the effects New York state’s energy policies are having on Appalachian natural gas producers, consumers and the Northeast. It explores the political, operational and economic issues related to the state government’s position on natural gas. Part two explores New York’s seeming blockade of natural gas and how that’s impacted the Appalachian Basin and efforts to get more supplies to places like New England.
The Marcellus and Utica shales have transformed Appalachia into one of the world’s largest natural gas producing regions, but a few hundred miles to the northeast, New England is starving for more -- thanks in part to New York energy policy.
At a watershed moment, during a time when long-needed pipeline capacity is coming online that could alleviate constraints in a lasting way, those in the industry believe New York is obstructing the energy benefits of other states and most notably freezing out New England…
Read the full article here: http://www.naturalgasintel.com/articles/111596-ny-part-2-new-york-freezing-out-marcellus-natgas-infrastructure
… Indeed, after years of oversupply, there’s a bevy of Appalachian projects slated to come online through 2020. Some of those are aimed at moving Appalachian gas east. Of the 20 projects in the queue that represent about 17.5 Bcf/d of takeaway, RBN Energy LLC said four of those would move nearly 3 Bcf/d to the East.
“When you think about it, it’s kind of the broader impacts to the Northeast region because you do have a lot of projects expected to come online in 2019 and 2020,” said Williams Capital Group LP analyst Gabriele Sorbara. “With all the projects coming online, do we have excess takeaway capacity in the region? That could be a problem.”
East Daley Capital’s Managing Director Justin Carlson agrees. But he said an overbuild is “absolutely a matter of geography,” with southwest Appalachia more likely to suffer the effects. Projects like Northern Access and Constitution are sorely needed in northern Appalachia.
